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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States rCircular No. 6 0 6 9 U November 30, 1967 REPORTS OF TRANSACTIONS IN FOREIGN EXCHANGE, TRANSFERS OF CREDIT, AND EXPORT OF COIN AND CURRENCY Revision of Operating Circular No. 19 To All Bankers and Banking Institutions, Brokers and Dealers, and Others Concerned, in the Second Federal Reserve District, Puerto Rico, the Virgin Islands, and the Panama Canal Zone: Enclosed is a copy of Operating Circular No. 19, Revised November 30, 1967. The revised circular incorporates the outstanding supplement to the superseded edition of the circular and reflects, among other things, an amend ment to the regulations of the Treasury Department that permits the reporting of data required to be filed with Federal Reserve Banks on media that can be processed by data-processing equipment, in lieu of reports on the forms described in those regulations. The proposed method and format of reporting on such media must be approved in writing by the Federal Reserve Bank of the District in which the report is filed, and reports filed in this manner must be accompanied by a printed copy of the data reported, signed by a responsible officer of the reporting institution. Additional copies of the operating circular will be furnished upon request. A lfred H a y e s , President. F ederal R eserve B ank of New Y ork Fiscal Agent of the United States [ O perating C ircular N o. 19 1 R ev ise d N o v e m b e r 3 0 , 1967 J REPORTS OF TRANSACTIONS IN FOREIGN EXCHANGE, TRANSFERS OF CREDIT, AND EXPORT OF COIN AND CURRENCY To A ll Bankers and Banking Institutions, Brokers and Dealers, and Others Concerned, in the Second Federal Reserve District, Puerto Rico, the Virgin Islands, and the Panama Canal Z o n e : This circular contains information on the reports required to be filed with this Bank by persons within the Second Federal Reserve District, Puerto Rico, the Virgin Islands, and the Panama Canal Zone1 pursuant to the provisions of Executive Order No. 6560, Executive Order No. 10033, and the regulations of the Secretary of the Treasury issued thereunder. Executive Order No. 6560 1. Executive Order No. 6560, dated January 15, 1934, prohibits, unless licensed or excepted as provided therein, transactions in foreign exchange, transfers of credit, and the export or withdrawal from the United States of coin and currency. Section 5 of the Order authorizes the Secretary of the Treasury to prescribe regulations to carry out the purposes of the Order, and to require any person engaged in any such transaction, transfer, export, or withdrawal, to furnish complete information relative thereto. The text of the Order is published in the Code o f Federal Regulations, Volume 31, Part 127. Executive Order No. 10033 and determinations thereunder 2. Executive Order No. 10033, dated February 8, 1949, among other things, authorizes (a) the National Advisory Council on Interna tional Monetary and Financial Problems2 to determine what informa tion is essential in order that the United States Government may comply with requests for data received from the International 1 In a letter dated February 1, 1954, the Acting Secretary o f the Treasury authorized this Bank “ to serve as fiscal agent o f the U nited States for the collection o f any and all reports required under the Treasury R egulations of A pril 27, 19 49 , as amended, from persons in Puerto Rico, the V irgin Islands, and the P anam a Canal Zone.” 2 Nam e changed, effective January 1, 1966, to “ N ational Advisory Council on International M onetary and F in ancial P o lic ie s.” Monetary Fund, and (b) tlie Director of the Bureau o f the Budget to determine what Federal executive agency shall collect such information. The text of the Order is published in the Code of Federal Regulations (3 CFR 1949-1953 Comp., p. 226). 3. The National Advisory Council, on September 7, 1965, made the following determination pursuant to Executive Order No. 10033: The National Advisory Council, having consulted with the Director o f the Bureau o f the Budget, determines that current information with respect to international capital movements, derived from data on United States liabilities to and claims on foreigners and transactions in securi ties with foreigners, and current information with respect to United States gold holdings, foreign-currency holdings, and dollar liabilities to foreigners, are essential in order that the United States may comply with official requests o f the International Monetary Fund fo r inform a tion with respect to the United States balance o f payments and monetary reserves. 4. In a determination dated December 1, 1965, the Director of the Bureau of the Budget, pursuant to Executive Order No. 10033, desig nated the Treasury Department as the Federal executive agency to collect the information found essential by the National Advisory Council (except information relative to direct-investment transactions, United States Government foreign lending operations, and claims and liabilities of United States Government agencies). Regulations of the Secretary of the Treasury 5. The regulations of the Secretary of the Treasury issued pur suant to the above-mentioned Executive orders and determinations are printed beginning on page 6 of this circular. The regulations: (a) grant a general license authorizing the transactions prohibited by Executive Order No. 6560; (b ) require every person subject to the jurisdiction o f the United States engaging in any transaction, transfer, export or withdrawal re ferred to in Section 1 o f that Order to furnish to the Federal Reserve Bank o f the District in which such person has his principal place o f business, or, i f such person has no principal place o f business in a Fed eral Reserve District, to the Treasury Department or to such agency as that Department may designate, (i) complete information relative thereto, including’ information relative to claims and liabilities arising therefrom, and, (ii) fo r the purpose o f Executive Order No. 10033, the infor mation determined to be essential by the National Advisory Council in order to comply with official requests fo r data made by the Inter national Monetary Fund, to such extent and in such manner and at such intervals as is required by report forms and instructions prescribed by the Secretary o f the Treasury; and 2 (c) describe the report forms prescribed by the Secretary fo r fu r nishing the information called fo r by the regulations, specify the persons required to make such reports and the frequency with which such reports are required to be made (paragraph 9 o f this circular sets forth certain exemptions from the reporting requirements), and permit the use o f alternative methods o f reporting on media that can be processed by dataprocessing equipment with the written approval o f the Federal Reserve Bank with which the report is filed. W hen completed reports should be filed with this Bank 6. The completed reports required to he filed with this Bank should be filed within the following periods: (a) Monthly reports on Forms B -l, B-2, and B -3: Not later than the 15th day following the end o f the month covered by the reports. (b ) Monthly reports on Preliminary Summary Form B - l : Not later than the 10th day following the last day o f the month. (c) Quarterly reports on Forms B -l and B -2 : Not later than the 15th day following the end o f each calendar quarter (March, June, September, and December). (d ) Twice-yearly reports on Supplement to Form B - l : Not later than one month following the report dates (A pril 30 and December 31). (e) Quarterly reports on Form C -l/2: Not later than one month following the end o f each calendar quarter (March, June, September, and December). ( f ) Monthly reports on Supplement to Form C -l/2: Not later than the 30th day following the end o f the month covered by the report. (g ) Monthly reports on Forms S -l and S -2: Not later than the 15th day following the end o f the month covered by the reports. (h) Reports on Supplement to Form S - l : Not later than the end o f the month following the report date (there is no regular report date; reports are requested from time to time by the Treasury Department). (i) Semiannual reports on Form S -4: Not later than the 15th day following the report dates (June 30 and December 31). ( j ) Other reports: Reports on the forms listed above or on other forms may be required from time to time at intervals other than those stated, and may call for greater detail than is required in the regular reports. Alternative methods of reporting 7. Data required to be filed with this Bank as prescribed on the forms specified in paragraph 6 may be reported on punch cards, magnetic tape, or other media that can be processed by data-processing equipment, provided the proposed method of reporting and the format is approved in writing by this Bank. Application for the use of such alternative reporting methods should be made to the Balance of Pay 3 m ents D iv ision o f our In tern a tion a l R esearch D ep a rtm en t. T he use o f such m ethods shall n ot affect the tim ely filin g o f re p o rts p rescrib e d in p a ra gra p h 6 h ereof n or the exem ptions specified in p a ra g ra p h 9 h ereof. W h o m ust re p o rt 8. All bankers and banking institutions, brokers and dealers, exporters, importers, industrial and commercial concerns, and other nonbanking institutions in the United States are required to report, except as specified in paragraph 9. The reports of head offices having branches or subsidiaries in the United States should include the report able amounts of all such branches or subsidiaries. In addition to the reports on Forms B -l and B-2 regularly required to be filed by bankers and banking institutions, additional reports are required from certain of these reporters, as follows: (a) A.11 bankers and banking institutions in the United States re porting liabilities to “ foreigners” on Form B -l totaling $75 million or more on March 31 or September 30 are required to file a report on Preliminary Summary Form B -l as o f the last business day o f each o f the succeeding six months (April-Septem ber; October-March). (b ) Bankers and banking institutions having branches or subsidiaries abroad, and agencies, branches, subsidiaries, or other affiliates o f foreign banks, are required to report as o f the end o f each calendar quarter, on separate copies o f Forms B -l and B-2, amounts included on their regular monthly Forms B -l and B-2 representing liabilities to certain affiliates abroad, as specified in Part I II o f the Instructions on such forms. E xem p tion s fro m re p o rtin g req u irem en ts 9. The Secretary of the Treasury has exempted the persons indi cated below from furnishing information on the following prescribed form s: (a ) Form B - l : A report a» o f any one month need not be filed by a banker or banking institution i f the grand total o f “ short-term” liabilities to “ foreigners” fo r its own account and fo r the account o f others averaged less than $500,000 in the six months ending with and including the reporting date, computed by averaging the monthly closing balances. The monthly report o f any banking institution having branches in the United States should include the reportable liabilities to “ foreigners” o f all such branches, except that the $500,000 exemption limit may be applied separately to each branch. In quarterly reports by bankers and banking institutions having branches or subsidiaries abroad, and agencies, branches, subsidiaries, or other affiliates o f foreign banks, amounts aggregating less than $500,000 fo r any individual country should not be reported. (b ) Preliminary Summary Form B - l : A report as o f any one month in the six months succeeding March 31 or September 30 need not be filed by a bank that regularly reports on Form B -l if, on either of the specified 4 dates, the total o f “ short-tenn” liabilities to “ foreigners” is less than $75 million (even if its “ short-term” liabilities exceed that level at monthends other than March 31 and September 30). (c) Supplement to Form B - l : Bankers and banking institutions that are exempt from reporting on Form B -l are also exempt from reporting on the Supplement to Form B -l. There is no separate exemp tion level applicable to that form. (d) Form B -2 : The exemptions applicable to monthly and quarterly reports on Form B -l, set forth in (a) above, are also applicable to Form B-2 ( “ Short-Term” Claims on “ Foreigners” ). (e) Form B -3 : The exemption applicable to monthly reports on Form B -l, set forth in (a) above, is also applicable to Form B-3 ( “ Long-Term” Liabilities to, and Claims on, “ Foreigners” ). ( f ) Form C -l/2: A report with respect to liabilities to “ foreigners” (C -l) as o f the end o f any quarter need not be filed by any “ person,” otherwise required to report, if the grand total o f his liabilities to “ foreigners” for his own account and fo r the account o f others averaged less than $500,000 in the quarter ending with the reporting date and the preceding quarter, computed by averaging the closing balances as of the end o f the two quarters. Similarly, a report with respect to claims on “ foreigners” (C-2) as o f the end o f any quarter need not be filed by any “ person,” otherwise required to report, if the grand total o f his claims on “ foreigners” fo r his own account and fo r the account of others averaged less than $500,000 in the quarter ending with the reporting date and the preceding quarter, computed by averaging the closing balances as o f the end o f the two quarters. (g ) Supplement to Form C -l/2: A report for any one month need not be filed by a “ person” otherwise required to report, if the grand total o f his claims reportable on the Supplement to Form C -l/2 is less than $1 million on the reporting date. (h) Form S - l : A report for any one month need not be filed by a “ person,” otherwise required to report, if both the grand total o f pur chases and the grand total o f sales o f “ long-term” securities, for his own account or for the account o f others in transactions with “ foreigners,” averaged less than $100,000 per month in the six months preceding the reporting date, computed by including transactions made in the month ending on the reporting date. (i) Form S -2: Persons exempt from reporting on Form S -l are also exempt from reporting on Form S-2. There is no separate exemption level applicable to that form. ( j ) Form S -4: A report as o f June 30 or December 31 need not be filed by a broker or dealer, otherwise required to report, whose total debit balances and total credit balances in accounts with “ foreigners” are both less than $100,000 on the reporting date and also were less than $100,000 on the preceding reporting date. R equests fo r re p o rt form s and alternative m eth od s o f rep o rtin g 10. Requests for the prescribed report forms and for permission to use alternative methods of reporting should be addressed to the Balance of Payments Division of the International Research Depart ment of this Bank. 5 Effect of this circular on previous circular 11. This circular supersedes our Operating Circular No. 19, Revised June 28, 1963, and the First Supplement thereto, dated August 27, 1964. A lfred H ayes, President. T itle 31— M o n e t an d F in a n c e : T reasu ry CHAPTER I — MONETARY OFFICES, DEPARTM ENT OF T H E TREASURY F art 128— T r a n s a c tio n s in F o r e ig n E x ch a n g e , T r a n s fe r s o f C r e d it, an d E x p o r t o f C o in an d C u r r e n c y SUBPART A— REGULATIONS Sec. 128.1 128.2 128.3 General license. Reports. Modification or revocation. SUBPART B— DESCRIPTION OF FORMS PRESCRIBED UNDER T H IS PART 128.10 Copies. 128.11 Foreign Exchange “ foreigners.” 128.12 Supplement to Foreign Exchange Form. B - l : “ Short-term” dollar liabilities to “ foreigners” in countries not listed sepa rately on Form B -l. 128.13 Foreign Exchange Form B -2: “ Short-term” claims on “ fo r eigners.” 128.14 Foreign Exchange Form B -3: claims on, “ foreigners.” 128.15 Foreign Exchange Form C - l/2 : “ foreigners.” 128.16 Supplement to Foreign Exchange Form C - l/2 : claims on “ foreigners.” 128.17 Foreign Exchange Form S - l : Purchases and sales o f “ long term” securities by “ foreigners.” 128.18 Supplement to Foreign Exchange Form S - l : U. S. Government bonds and notes held for “ foreigners.” 128.19 Foreign Exchange Form S-2: Purchases and sales o f U. S. Government bonds and notes by “ foreign official institutions.” Form fi B -l: “ Short-term” liabilities to “ Long-term” liabilities to, and Liabilities to, and claims on, “ Short-term” 128.20 Foreign Exchange Form S -4 : Foreign debit and credit balances. 128.21 Use o f prescribed report forms fo r portions o f data required to be reported thereon. 128.22 Special survey report forms. 128.23 Alternative methods o f reporting. ft SI * A u t h o r i t y : The provisions o f this Part 1 28 issued under sec. 5, 40 Stat. 415, as amended, see. 8, 59 Stat. 515; 50 U.S.C. A pp. 5, 22 U.S.C. 286f, E.O. 6560, Jan. 15, 1934, E.O. 10033, 14 F.R. 561, 3 CFR, 1949-1953 Comp. * * « SUBPART A— REGULATIONS § 128.1 General license. Licenses may be granted, and a general license is hereby granted, to all individuals, partnerships, associations, and corpora tions, authorizing any and all transactions in foreign exchange, transfers o f credit, and exports o f currency (other than gold certificates) and silver coin. The general license granted in this section authorizes transactions to be car ried out which are permitted by Executive Order 6560 o f January 15, 1934 (Part 127 of: this chapter), under license therefor issued pursuant to such Executive order; but does not authorize any transaction to be carried out which, at the time, is prohibited by any other order or by any law, rulings, or regulation. § 128.2 Reports. In order to effectuate the purposes o f Executive Order 6560 o f January 15,1934 (Part 127 o f this chapter), and in order that infor mation requested by the International Monetary Fund under the Articles o f Agreement o f the Fund may be obtained in accordance with section 8 (a) o f the Bretton Woods Agreements Act (Sec. 8 (a) 59 Stat. 515; 22 U. S. C. 286f and Executive Order No. 10033, 14 F. R. 561; 3 CFR, 1949 Supp.), every person subject to the jurisdiction o f the United States engaging in any transaction, transfer, export or withdrawal referred to in § 127.1 o f this chapter shall furnish to the Federal Reserve bank o f the district in which such person has his principal place o f business in the United States information relative thereto, including information relative to claims and liabilities arising therefrom, and information determined to be essential to comply with official requests fo r data made by the International Monetary Fund, to such extent and in such manner and at such intervals as is required by report forms and instructions prescribed by the Secretary o f the Treasury. In the event that such person has no principal place o f business within a Federal Reserve district, the information shall be furnished directly to the Office o f Interna tional Affairs,* Treasury Department, Washington, D. C., 20220, or to such agency as the Treasury Department may designate. * * * * Name of office changed to “ Office of the Assistant Secretary for International A ffairs’ ’ on O ctober 14, 1964. Ed. 7 § 128.3 Modification or revocation. The regulations in this part and the general license granted in this part may be modified or revoked at any time. STTBPAET B— DESCRIPTION OP FORMS PRESCRIBED UNDER T H IS P A R T1 § 128.10 Copies. Copies o f the forms described in this subpart with instructions may be obtained from any Federal Reserve bank or the Office o f International Affairs,* Treasury Department, Washington, D. C., 20220. § 128.11 Foreign Exchange Form B - l : “ Short-term” liabilities to “ foreig n ers” On this form bankers and banking institutions in the United States are required to report monthly to a Federal Reserve bank “ short-term” liabilities to ‘‘foreigners” or assets held on behalf o f “ foreigners” which represent claims on institutions or individuals in the United States, as o f the last day o f business o f the month. § 128.12 Supplement to Foreign Exchange Form B - l : “ Short-term” dollar liabilities to “ foreigners” in countries not listed separately on Form B -l. On this form bankers and banking institutions in the United States are re quired to report twice a year, as o f April 30 and December 31, to a Federal Reserve bank “ short-term” dollar liabilities to “ foreigners” in countries not listed separately on Form B -l. § 128.13 Foreign Exchange Form B -2 : “ Short-term” claims on “ fo r eigners.” On this form bankers and banking institutions in the United States are required to report monthly to a Federal Reserve bank “ short-term” assets owned by the reporter or held fo r the account o f domestic customers which represent claims on “ foreigners,” as o f the last day o f business o f the month. § 128.14 Foreign Exchange Form B -3 : “ Long-term” liabilities to, and claims on, “ foreigners.” On this form bankers and banking institutions in the United States are required to report monthly to a Federal Reserve bank “ long-term” liabilities to, and claims on, “ foreigners” acquired or held, either in the United States or abroad, by reporting organizations for their own account or fo r the account o f others, as o f the last day o f business o f the month. § 128.15 Foreign Exchange Form C -l/2: Liabilities to, and claims on, “ foreig n ers” On this form exporters, importers, industrial and commercial concerns and other nonbanking institutions in the United States are required to report quarterly, as o f the last day o f business o f the quarter, to a Federal Reserve bank “ short-term” and certain other liabilities to and claims on “ foreigners” acquired or held, either in the United States or abroad, by report ing organizations fo r their own account or fo r the account o f others. § 128.16 Supplement to Foreign Exchange Form C -l/ 2: “ Short-term” claims on “ foreigners.” On this form exporters, importers, industrial and 1 Bureau * O ctober The specific reporting requirements contained in this subpart have been approved by the of the Budget in accordance with the Federal Reports A ct of 1942. Name of office changed to “ Office of the Assistant Secretary for International A ffairs” on 14, 1964. Ed. S commercial concerns and other nonbanking institutions in the United States are required to report monthly to a Federal Reserve bank data on a portion o f their claims on “ foreigners,” as of the last day o f business o f the month. § 128.17 Foreign Exchange Form S - l : Purchases and sales o f “ long term” securities by “ foreigners.” On this form bankers and banking institu tions, brokers and dealers in the United States are required to report monthly to a Federal Reserve bank transactions in ‘‘long-term” and certain other securities executed in the United States fo r account o f “ foreigners” and transactions in “ long-term” securities executed abroad fo r their own account and for the account o f their domestic customers. $ 128.18 Supplement to Foreign Exchange Form S - l : TJ. S. Govern ment bonds and notes held fo r “ f o r e i g n e r s On this form bankers and banking institutions, brokers and dealers in the United States are required to report to a Federal Reserve bank, as requested by the Treasury Department, their holdings for the account o f “ foreigners” o f United States Government bonds and notes. § 128.19 Foreign Exchange Form S-,2: Purchases and sales o f U. S, Government bonds and notes by “ foreign official institutions .” On this form bankers and banking institutions, brokers and dealers in the United States are required to report monthly to a Federal Reserve bank purchases and sales o f United States Government bonds and notes by “ foreign official institutions.” § 128.20 Foreign Exchange Form S-4: Foreign debit and credit bal ances. On this form brokers and dealers in the United States are required to report semi-annually to a Federal Reserve bank, the debit and credit bal ances in their accounts carried by or fo r “ foreigners,” as o f June 30 and December 31. § 128.21 Use o f prescribed report forms fo r portions o f data required to be reported thereon. The report forms described in Sections 128.11-128.20 are also prescribed for use, as needed, for the collection at intervals other than the ones stated o f a portion o f the data required on each form in the same or greater detail. § 128.22 Special survey report form s. On report forms other than those described in § § 128.11 to 128.20 reports are required from time to time to provide detailed information on the content o f aggregate data reported on these forms and also to provide qualitative information necessary fo r ade quate analysis o f the data reported. § 128.23 Alternative methods o f reporting. In lieu o f reports on the forms described in this subpart, the required data may be reported on punch cards, magnetic tape, or other media that can be processed by data-processing 9 equipment, accompanied by a printed copy o f the data reported which must be signed by a responsible officer o f the reporting institution. The proposed method and format o f reporting must be acceptable to the Federal Reserve Bank o f the district in which the report is filed, and must be approved in writing by that Bank. • • 10 •
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